British Gas cuts prices for pre-payment meter customers - is now the cheapest supplier of pre-pay gas and electricity throughout Britain
- Pre-pay meter customers get standard gas price cut of 9%
- Pre-pay prices now, on average, the same as cash/cheque prices
- British Gas now on average the cheapest supplier of standard gas and electricity for pre-pay customers
British Gas customers who pay for their gas using pre-pay meters will today see their prices fall by 9% - saving the average customer £76 per year.
British Gas is now the cheapest supplier of standard gas and electricity for pre-pay meter customers throughout Britain at average consumption.
In fact, British Gas is now on average the cheapest supplier of standard gas and electricity throughout Britain, no matter how customers choose to pay. The company announced today an average cut of 7% for all standard gas customers. Pre-pay customers are receiving an extra benefit - with an average price cut of 9% - because British Gas has removed the price ‘differential' for gas pre-pay meter accounts. This means British Gas' pre-pay gas customers are now paying, on average, the same for their energy as customers who pay by cash or cheque. British Gas has, for some time, been working to become more efficient, improve customer service and cut costs for its pre-pay customers.
Gearóid Lane, Managing Director, Communities & New Energy at British Gas, said:
"We know household budgets are stretched, and that the recent cold snap has been difficult for many people. We are pleased that we can now, while it's still winter, extend this extra help to our gas pre-pay customers by cutting their prices - saving them an average £76 a year.
"Today's price cut means that, no matter where you live in Britain, British Gas is offering, on average, the cheapest standard gas and electricity for pre-pay customers.
"We've been looking at how we can become more efficient, improve customer service and cut costs for our pre-pay customers."
Today's price cut is the latest in a series of improvements for British Gas' pre-pay customers. In November last year the company launched its new free Home Energy Top Up service, which makes it possible for customers to top up their energy online in the comfort of their own homes, rather than having to go to a shop. British Gas is the only energy company to offer free home top up for both gas and electricity.
The announcement was welcomed by Jenny Saunders of NEA, who said:
"Pre-pay gas customers on low fixed incomes have been hardest hit during this winter's cold snaps. Many face the immediate choice of spending more on heating or going without other essentials. I welcome British Gas' decision to bring its gas PPM tariff into line with standard credit terms. NEA has called for action on tariff differentials, and I am pleased British Gas has responded and is offering a better deal."
David Orr, chief executive of the National Housing Federation, said:
"We're delighted that British Gas is to equalise permanently the tariffs it charges to pre-pay meter users with those charged to customers on quarterly bills.
"This is a great day for social justice and means that almost one million people, many of whom are on lower incomes, will now find it easier to pay for their energy and heat their homes.
"We've campaigned for this day for a long time and British Gas is to be commended for doing the right thing."
It was also supported by Patricia Kidds, who is a member of British Gas' new customer panel, which met for the first time on 27 January - and raised the issue of prices for pre-pay customers with senior leaders at British Gas. Patricia Kidds said:
"The customer panel is a great idea. I'm especially pleased that, having noted our views, British Gas has decided to remove this premium for pre-pay customers."
Notes to Editors
- British Gas removed the costs for electricity pre-pay meter customers in December 2008, and has today removed the price differential for gas pre-pay meter customers, having previously reduced the differential to around 50p per week, per customer
- British Gas today announced an average 7% cut in gas prices for all its standard customers throughout Britain - making it on average the cheapest supplier of gas and electricity in Britain
- The saving of £76 (9% price cut) is for customers who buy gas and/or dual fuel from British Gas by pre-pay meter(s) at average consumption
- The 7% cut is based on standard tariff, rounded average across all regions and across Monthly Direct Debit, Pay as You Go Energy and Prompt Quarterly Cash/Cheque payment methods
- British Gas cheapest comparisons are based on consumption of 20,500kWh for gas and 3,300kWh for single rate electricity as at 4 February 2010
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